BorgWarner (BWA) Downgraded to Hold at Zacks Investment Research
BorgWarner (NYSE:BWA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “The Zacks Consensus Estimate for BorgWarner’s annual earnings has been going up of late. It is poised to benefit from its expansion in Asia that will positively impact its sales figure. Also, a strong balance sheet and ample cash flow help the company to return capital to its shareholders and undertake new acquisitions. Moreover, it has provided a positive guidance for fiscal 2017. Also, in the last three months, BorgWarner’s shares have outperformed the industry it belongs to. However, the company has been facing pressure from OEMs to reduce prices, which makes it difficult for the company to pass on its production expenses. Moreover, foreign currency fluctuations and costs related to the divestment of its Remy light vehicle aftermarket business are few other headwinds the company is facing.”
BWA has been the topic of several other reports. Deutsche Bank lowered shares of BorgWarner from a “buy” rating to a “hold” rating and set a $55.00 target price on the stock. in a research note on Thursday, October 12th. BMO Capital Markets increased their target price on shares of BorgWarner from $60.00 to $65.00 and gave the stock an “outperform” rating in a research note on Monday, October 30th. Buckingham Research increased their target price on shares of BorgWarner from $37.00 to $45.00 and gave the stock a “neutral” rating in a research note on Thursday, October 19th. Royal Bank of Canada reissued a “hold” rating and set a $61.00 target price on shares of BorgWarner in a research note on Wednesday, December 20th. Finally, Barclays set a $50.00 target price on shares of BorgWarner and gave the stock a “hold” rating in a research note on Friday, October 20th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $51.88.
BorgWarner (NYSE:BWA) last issued its earnings results on Thursday, October 26th. The auto parts company reported $0.95 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.88 by $0.07. The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.26 billion. BorgWarner had a net margin of 3.09% and a return on equity of 21.48%. BorgWarner’s revenue was up 9.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.78 earnings per share. equities analysts expect that BorgWarner will post 3.83 EPS for the current year.
In other BorgWarner news, VP Joel Wiegert sold 1,400 shares of the firm’s stock in a transaction on Monday, December 18th. The shares were sold at an average price of $52.35, for a total value of $73,290.00. Following the transaction, the vice president now directly owns 16,197 shares of the company’s stock, valued at $847,912.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP John J. Gasparovic sold 38,409 shares of the firm’s stock in a transaction on Monday, December 18th. The shares were sold at an average price of $52.60, for a total transaction of $2,020,313.40. Following the completion of the transaction, the executive vice president now directly owns 63,937 shares in the company, valued at $3,363,086.20. The disclosure for this sale can be found here. 0.66% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. MML Investors Services LLC raised its holdings in shares of BorgWarner by 1.2% in the second quarter. MML Investors Services LLC now owns 7,407 shares of the auto parts company’s stock valued at $314,000 after purchasing an additional 91 shares during the last quarter. Sentry Investment Management LLC raised its holdings in shares of BorgWarner by 0.9% in the second quarter. Sentry Investment Management LLC now owns 13,520 shares of the auto parts company’s stock valued at $573,000 after purchasing an additional 120 shares during the last quarter. Westover Capital Advisors LLC raised its holdings in shares of BorgWarner by 1.6% in the second quarter. Westover Capital Advisors LLC now owns 12,496 shares of the auto parts company’s stock valued at $529,000 after purchasing an additional 200 shares during the last quarter. Scotia Capital Inc. raised its holdings in shares of BorgWarner by 2.6% in the second quarter. Scotia Capital Inc. now owns 12,973 shares of the auto parts company’s stock valued at $550,000 after purchasing an additional 328 shares during the last quarter. Finally, D.A. Davidson & CO. raised its holdings in shares of BorgWarner by 2.1% in the second quarter. D.A. Davidson & CO. now owns 25,570 shares of the auto parts company’s stock valued at $1,083,000 after purchasing an additional 528 shares during the last quarter. 95.16% of the stock is currently owned by hedge funds and other institutional investors.
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BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
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